Molan reschedules two SAR 2.05M Murabaha financing installments

Logo of Molan Steel Co.

Molan Steel Co. rescheduled two installments due on Oct. 31, 2026, under a Murabaha financing facility provided by the company’s sukuk holders through Afaq Capital platform, with payment deferred to no later than Jan. 31, 2027, subject to the financier’s approval.

In a statement to Tadawul, the company said the SAR 10 million financing is divided into two issuances worth SAR 5 million each, dated May 7, 2025, and May 25, 2025. The total value of the two rescheduled installments due on Oct. 31, 2026, amounts to SAR 2.05 million, comprising SAR 1.5 million in principal and SAR 554,320 in Murabaha profits.

The company noted that the financing period, originally running from the date of each issuance until the final installment payment on April 30, 2029, remains unchanged following the rescheduling. The arrangement is limited to deferring the two installments due on Oct. 31, 2026, until no later than Jan. 31, 2027.

The guarantees provided for the rescheduled financing consist of a promissory note issued by the company in favor of the special purpose entity’s trustee, covering the full outstanding debt. No additional guarantees were provided for the rescheduling.

There are no related parties to the deal, the company added.

Molan added that the rescheduling agreement was signed on Oct. 29, to align the financing repayment schedule with the company’s expected cash flows.

In March, Molan announced plans to issue SAR-denominated sukuk at a value of SAR 20 million and appointed Afaq Capital as the sole arranger for the establishment, issuance, and offering of the sukuk on its platform, Argaam data showed.